The FTSE and other European gauges started the day higher buoyed by record high closures on Wall Street on Boxing Day. The tech heavy Nasdaq breached the 9,000 level, helping bring up its total gain this year to 36%. President Trump’s comments about the pending deal with China, which now just awaits a final signing ceremony, helped the index hop over the key level.
Commodities gain on Chinese industrial data
Chinese industrial data helped boost oil and gold prices as it showed that industrial companies returned to growth in November. In the year-to-date China’s industrial profits slipped a total of 2.1% and in October alone profits fell 9.9%. However as the government stepped in with supportive policies the effects started being felt in November when industrial profits rose 5.4% on the year.
Pound rallies despite signs of retail slowdown
The pound is still enjoying the post-election, pre-Brexit moment of quiet and has rallied 0.58% against the dollar at the start of the London trading day. As MPs like the rest of the country recover from the food and drink excesses of Christmas there is little news flow other than Boris Johnson’s plans to locate some of the new government agencies promised in his election manifesto outside of London. Life is also beginning to return to the UK high street although early Boxing Day retail numbers show that shopping on the first day of sales has been far more muted than in previous years.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.